Metgasco Ltd (ASX:MEL)
says it will partner with fellow gas company LNG Ltd to determine the feasibility of converting gas to liquefied natural gas in Queensland. Metgasco and LNG have executed an agreement that will allow both companies to study the viability of supplying gas from Metgasco’s wholly owned coal seam reserves and conventional gas resources in the Clarence Moreton Basin, to LNG’s wholly owned Gladstone LNG Project in Queensland.
LNG currently holds a 5.03 per cent stake in Metgasco and is its largest shareholder.
Metgasco has also separately announced that it has entered into a memorandum of understanding with FLEX LNG Ltd, in which both companies will determine the feasibility of a floating LNG project.
For the six months to 31 December Metgasco reported a loss of just under $3 million.